Buying Property in Dubai Use FX to your advantage

  • 11MAR
Working closely with our FX partners IFX - International Foreign Exchange - they are always on hand to discuss with Exclusive Links customers the ease of setting up an account and moving funds internationally. 
 
We think now is a good time to move money into Dubai from the UK and Europe and take advantage of:
  • best mortgage interest rates and increased LTV
  • bottomed out prices in secondary sales
  • post-handover payment plans on off plan projects
  • higher yields and attractive property ROI's

This year has already seen:
A 3 year high selling GBP and buying AED/USD with rates into 5.2's
A 3 year high selling Euro and buying AED/USD with rates into 4.5's
 
This translates to conversions at the rate highs of this year:
 
Selling GBP and buying AED2M @5.2 would have cost =GBP384,615
Selling Euro and buying AED2M @4.5 would have cost =EUR444,444
 
A comparison to just 12 months ago (pre covid):
 
Selling GBP and buying AED2M @ 4.553 would have cost =GBP439,270
Selling Euro and buying AED2M @ 4.098 would have cost =EUR488,043
 
With Dubai house prices at a more affordable level and the USD/AED at a 3 year low against GBP & Euro we are seeing many clients raising cash in their home countries to fund the purchase of properties in Dubai.
 
With interest rates on mortgages being so low in the UK & Europe the cost of borrowing funds is less compared to Dubai, this coupled with the favorable exchange rates and Dubai property pricing, is prompting more clients to purchase property in Dubai at the best pricing and rates seen in years (if ever).
 
Forecasting where we go from here is difficult and many factors play a part.  In a post covid world, currency rates are very volatile with unpredictable influences.  The main factor driving currency at the moment is Covid.  The countries handling of the virus and subsequent roll out of the vaccine and therefore recovery of the economy are all contributors. The UK especially is seen to be handling the vaccine roll out much better than its peers in the US and with Brexit off the table and the signs of lockdown in the UK coming to an end, there is little to hold the pound back against the dollar going forward.
 
Let us know if you would like an introduction to IFX so you can discuss how they can help you - not only for today's thoughts but in planning for tomorrow.  

 

Author: Zarah Evans, Managing Partner - Exclusive Links Real Estate Brokers


IFX (UK) Ltd is not responsible for any information presented in this article (including any financial news, rates, opinions and/or analysis) and will not be held liable for any loss or damage resulting from the same. You should contact IFX to obtain an accurate quote for exchange rates from one of IFX's currency consultants. IFX (UK) Ltd is regulated by the Dubai Financial Services Authority as a Representative Office (DFSA Firm Reference Number F001814).
11th March 2021

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